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MPLS

M&A Down Under

7:45 AM -- Two of Australia's competitive carriers are to merge if SP Telemedia's proposed A$373 million (US$347 million) acquisition of wholesale network operator PIPE Networks Ltd. is successful.

SP Telemedia Ltd. (ASX: SOT), which offers its voice and data services to businesses and government departments, already has its own MPLS nodes, VoIP infrastructure, and DSLAMs. Pipe has built out metro fiber networks in major cities such as Sydney, Melbourne, and Brisbane; runs Australia's largest Internet exchange; and has built a new subsea cable, PPC-1, linking Australia to the rest of Asia/Pacific. (See Pipe, Tyco Complete Subsea Cable and Tata Hooks Into Oz Pipe.)

"Pipe's extensive metropolitan dark fibre network will increase SPT's capabilities as a data communications provider," noted SP Telemedia executive chairman David Teoh in a prepared statement, adding that PPC-1 would give SP Telemedia "a competitive advantage with access to international bandwidth."

The carriers expect the acquisition to be completed some time in March or April 2010.

For more on the deal, check out this Smart Company report.

— Ray Le Maistre, International News Editor, Light Reading

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